Merging with another company is a process that should begin with audited financial statements reflecting the results and financial position of the combined entity. Preparing these statements requires close communication between in-house accounting personnel and an external audit team for both companies. Connection between entities and auditors is key to a smooth transition.
Reading time: 1 minute 30 seconds Disclosing cyber-risks and recent hacks is becoming a prominent request from investors, lenders, and other stakeholders. Stakeholders want more information than most companies are providing. The Securities and Exchange Commission (SEC) is working to … Continued
A key factor in the detection and prevention of fraud is strong internal controls. Section 404(1) of the Sarbanes-Oxley Act (SOX) requires that public company’s management annually assesses the efficacy of internal controls over financial reporting. Section 404(b) of SOX requires independent auditors provide an attestation report on the assessment of internal controls by the company’s management (though some smaller companies are exempt).
Many high profile accounting scams and financial restatements have been attributed to complex accounting estimates such as impairments of long-lived assets, valuations of financial and nonfinancial assets, and allowances for doubtful accounts. This is partially because estimates almost always involve some level of measurement uncertainty; this uncertainty can even call for the use of outside specialists such as engineers or appraisers.
An audit is often viewed as a compliance exercise that doesn’t offer much value to management other than satisfying a reporting requirement. A proper audit process is often described as one that was completed on time and with few surprises. A bad audit process breeds the mentality that the audit is to be tolerated, endured and celebrated when finally finished.
The tax law was signed on December 22, 2017. Many of the amendments are to take effect in 2018, but there are sections that take effect on the date the bill was signed. On January 10, 2018, the Statutory Accounting Principles (E) Working Group voted to approve the following non-substantive revisions to SSAP No. 101-Income Tax.
Extension of Ninety-Day Rule for the Impact of Hurricane Harvey, Hurricane Irma and Hurricane Maria (INT 17-01): INT-17-01 grants a 60-day extension to the 90-day rule for those directly impacted by Hurricanes Harvey, Irma and Maria, not to extend beyond February 15, 2018.
As the holidays approach, JLK Rosenberger is taking a new perspective on a holiday classic – the Twelve Days of Christmas. Rather than filling your head with turtle doves and gold rings, we are going to instead focus on the latest changes to SSAP and how they will impact your insurance company in 2018 and beyond.
The continual development of technology in the business landscape is no surprise. Companies in multiple industries are taking advantage of the opportunity to deliver faster and more convenient service while reducing costs through digital innovation. As discussed in a previous blog post, the insurance industry is now following suit with new innovations designed to optimize the customer experience while finding opportunities for new services and increased revenue.
The advancement of technology is progressing at an amazing pace. This is evident through the development of new products such as the self-driving car, drones and the many wearable technology products currently on the market. While these are the products that grab our attention, there are other advancements which have a more lasting impact on businesses and their processes.